Defining 'exempt' and 'nonexempt'

Question: “I’m in desperate need of some way to explain the concept of exempt and
nonexempt employees to top management in my company. I know there are
strict legal definitions, but I wish someone would come up with an
informative shorthand description of the difference between the two
categories. I also need a way to impress on management the importance
of carefully distinguishing between exempt and nonexempt status. Any
advice?” — Ron C., Oklahoma

Comments

It’s
a perennial HR challenge: Determining whether an employee is exempt
from the overtime requirements of the Fair Labor Standards Act (FLSA).

In a nutshell: Exempt workers aren’t eligible for overtime pay.
Rather, they’re paid for the job they do, not the hours they keep.

Here are the key considerations in deciding whether an employee is exempt or nonexempt under the FLSA:

1. Does the employee earn a salary?
2. Does the employee hold a position with duties the U.S. Labor
Department designates as appropriate for exempt positions? (Generally,
those positions fall into one of these categories: executive,
administrative, "learned," computer or creative professionals, or
outside sales people.)